Prime Highlights
- Google has reached a ₹20.24 crore settlement with India’s antitrust regulator (CCI) over its restrictive practices in the smart TV segment.
- This is part of the first settlement under India’s new antitrust rules, providing a template for future tech policy changes.
Key Facts
- The CCI determined Google required pre-installation of its entire app suite on Android TVs.
- Companies were prohibited from using modified Android versions.
- Google has now made a proposal to unbundle its apps and relax these constraints.
Key Background
In a first, Google has settled an antitrust probe by the Competition Commission of India (CCI) by consenting to a ₹20.24 crore payment in connection with its smart TV market conduct. The case was based on grievances lodged in 2020 by legal experts that Google was abusing its market dominance in the Android operating system to impose restrictive terms on smart TV makers.
The substance of the complaint claimed that Google forced smart TV manufacturers to pre-load its entire family of apps—such as YouTube and the Google Play Store—by imposing contracts. The contracts also barred companies from creating or selling smart TVs based on tweaked versions of Android (referred to as “Android forks”), thereby stifling innovation and competition.
After a thorough investigation, the CCI held that Google’s behavior contravened India’s Competition Act, under abuse of dominant market position and anti-competitive agreements. The commission noted that Google’s actions not only stifled other platforms but also curtailed access to the market for potential competitors in the smart TV operating system market.
Reacting, Google opted to settle the case under the recently initiated Settlement & Commitment process by the CCI. As part of the settlement, Google has volunteered to unbundle licensing of its Play Store and other apps from the Android TV software. With this unbundling, the manufacturers get increased freedom to choose which apps to install and the platforms on which they can use or create their own apps, and perhaps let newer entrants into the market.
This move is important not just for smart TV buyers and sellers but also for the overall regulatory strategy towards Big Tech in India. It is the first settlement under India’s new antitrust regulations and may act as a model for future disputes. Google’s proposed changes are likely to promote more competition, increase consumer choice, and potentially lower the cost of smart TVs by eliminating forced app integrations.